Subscribe to receive this FREE daily commentary directly in your email
11.12.20
Stocks – NVDA, ACAD, HD, PYPL
Macro – SPY
Mike’s Reading The Markets (RTM) Premium Content – NOW WITH A 2 WEEK FREE TRIAL
- Amazon’s Pricey Stock Attracts A Bearish Bet
- Stocks Move Lower As It Continues To Wait For Stimulus
- Softbank May Have Closed Options Positions Out
- Mother Of All Options Trades?
- Tech Tries To Bounce
- Techmageddon Upon Us?
- Gold And The Equity Risk Premium
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN ACAD
Stocks fell on November 12, with the S&P 500 declining by 1%, finishing off of its lows. Meanwhile, the Qs finished the day lower by about 50 bps.
There was nothing special about today, just some more grinding in the indexes giving up all of the vaccine gains on Monday. I tend to think that the market is either in a holding pattern in a range of 3,200 to 3,600 or that we have downside risk going into year-end. I don’t think the setup is all that favorable. Especially with COVID cases rises, modified stay at home order being put in place, and no stimulus coming.
I hate to say it, but the best way for the market to get a stimulus deal down is to force our politicians’ hands, which means some volatility lower. It seems to be the most effective way for the market to get what it wants. I’m not saying the situation warrants such an extreme at this point, but it could sometime soon.
In the morning write-ups, I have noted some huge options bets have been placed on the SPY and QQQ ETF’s suggesting lower prices lie ahead.
S&P 500 (SPY)
For now, the S&P 500 is holding support at the green downtrend I have drawn in. If that breaks, then I think we will see a move lower back to 3,270, filling all the gaps that have been left unfilled from last week.
Nvidia (NVDA)
Nvidia finished the day flat, but notice how it rose to the trendline and turned lower off of it. Not the most bullish sign, suggesting the uptrend is dead, and the next turn is towards $460.
Acadia (ACAD)
Acadia is climbing nicely, and the company continues to impress. The opportunities are huge if it can get that approval from the FDA in dementia-related psychosis. The gap is nearly filled at $56.
PayPal (PYPL)
PayPal doesn’t look particularly appealing these days. The stock has some double top pattern going on. Meanwhile, the RSI is trending lower, indicating that the shares are likely to fall to around $172.
Home Depot (HD)
Home Depot has gone nowhere since August, and the RSI tells us it will continue to go sideways or lower. Higher isn’t in the cards until there is a reversal of momentum.
-Mike
Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.
Subscribe to receive this FREE daily commentary directly in your email
This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.
rtm9 29 25
Mott Capital's Market Chronicles 7 hours ago